Human development cost of quality in a quantified world

Human Development-Cost of Quality in a quantified world

Applying a skill maturity to workers for a true cost calculator most managers are unaware of.

Copyright @2015 Wicked Design SolutionsLisa Martinez 408-638-9016

Wicked Problems are difficult to explain and often people don’t recognize the relationships across incidents, problems, risk and often even once escalated to the crisis stage. ◦ Equality for Women and Girls and Minority Populations are wicked

problems◦ Equal Access to Education, Healthcare, and Economic Opportunities

across the income classes are wicked problems In the workforce social responsibility has a few key points of interest;

Fair labor practices Non-discriminatory hiring Diversity and Inclusion

Wicked Problems – Execution of Strategy Symptoms have many interrelated parts-Operational and Organizational Issues

Industrialized to Overproduction and Systems to Quality of Life

Attrition at the right value for the expert, mid –level and entry level worker.

Data is the raw format of everything technology or manual inputs from people in their process.◦ Data without context is just raw data and a technical format for operations

Information is data in context with date and time stamps◦ Unaltered time and date stamps and record retention

Knowledge is the way people translate information ◦ People may not have applied the knowledge they have merely acquired it.

Wisdom is the way people understand and apply knowledge and the way they influence the system. ◦ Not all workers seek to earn wisdom, many remain satisfied with

knowledge.

Data, Information, Knowledge and Wisdom

Segmentation for three operating models

1. For entry-level employees, it costs between 30% and 50% of their annual salary to replace them.

◦ Fast Lane – Workers need Information

2. For mid-level employees, it costs upwards of 150% of their annual salary to replace them.

◦ Middle Lane – Workers acquire and apply Knowledge

3. For high-level or highly specialized employees, you're looking at 400% of their annual salary.

◦ Slow Lane – Workers understand their actions in the system resulting in Wisdom

Lisa Martinez 408.638.9016 Wicked Design Solutions Copyright @ 2015

Examples of the use in three lanes running in parallel

Different velocity on each Different outcomes and behaviors Different volumes Different Risk and Returns


Cost to Benefits with Risk Awareness

Financing for Development (FfD) Benefits – Direct EngagementCopyright @2015 Wicked Design Solutions

Lisa Martinez 408-638-9016

Entry Level EmployeesExpense/Cost Transaction Capability with Revenue/Benefits Transaction Capability

Fast Lane

Middle Lane

Slow Lane

Fast Lane

Middle Lane

Slow Lane

Suppliers are preferred and transactions are

simply but many

Customers are typically sold through a channel

who has invested in their development. Simple

order but many


Entry Level EmployeesExpense/Cost Transaction Capability with Revenue/Benefits Transaction Capability

Fast Lane

Middle Lane

Slow Lane

Fast Lane

Middle Lane

Slow Lane

Suppliers are preferred and transactions are

simply but many

Risk Transfers to channels for indirect customer business

models


Mid Level EmployeesExpense/Cost Transaction Capability with Revenue/Benefits Transaction Capability

Fast Lane

Middle Lane

Slow Lane

Fast Lane

Middle Lane

Slow Lane


During Operational Monitoring and SensingExpense/Cost Transaction Capability with Revenue/Benefits Transaction Capability

Fast Lane

Middle Lane

Slow Lane

Fast Lane

Middle Lane

Slow Lane

Basic Skills

Advanced Skills

Expert Skills

Basic Skills

Advanced Skills

Expert Skills

Reduces Budget as a Cost or Expense

Increases revenue or supplies benefits


Cost = Expense in public to private sector translation

Supplier Stakeholders

Service Providers

and Suppliers

Cost

Branch or Regional Delivery

Capabilityand

Customer or Citizen

Benefits

Copyright @ 2015 WICKED Design Solutions Lisa Martinez 408.638-9016

10

20

30

Benefits = Revenue in public to private sector translation

Customer Stakeholders

10

20

30

Benefits Increases Income

Cost reduces Income

Fast Lane

Middle Lane

Slow Lane

Fast Lane

Middle Lane

Slow Lane

Planning and Operations Risk and Returns with the right workers

Managers struggle with the “great insiders” in fact, the majority are pushed out of the workforce by age 45.


Resource Skills 10 entry level 20 advanced level 30 expert level

10-A new or small Business

Healthy number of operational type workers

A percentage of workers who can lead and change

A small percent of workers who are highly adaptable and understand invention or R&D.

20-A medium size business




30-An enterprise size businessInternational stakeholders




Workers in a Healthy Living Organization Worker skills to strategy and patterns across any size business


Partners in a resale model

Maturity Region authority Rewards based on invested and performance thresholds

10-A small reseller

Healthy number of partners who can represent a specific offer,

Focuses on an offer without full product expertise

Has invested n the development and training eligible for rebates, rewards and discount thresholds

20-A medium size reseller 2 tier

Healthy number of partners effective at managing a product line including service

Represents a geography of customers by certification of product line and 1st level service support


30-A distributor

A healthy number of distribution channels to fulfill the regions through resale channels

Has regional repair and storage for massive quantities


External Partner and Distributor PatternsInvested development - Suppliers and partners in mutually rewarding relationships


Resource Maturity Resource Outcomes Effort Risk

10-May be an experienced person with solid training and tools.

Enables organizations or individuals to support with a generalist skills when tools are followed and monitored.

10 Low 10 Low

20-Skills are greater than generalist and tools must be developed.

Enable effective tools to promote the health with best practices for medium businesses.

20 Medium 20 Medium

30 – Largest Companies requires the experts in small workgroups.

Enable experts to quickly assess and discreetly ensure a comprehensive review of an enterprise size business.

30 High 30 High

Resource Effort and Risk ComplexityPatterns are consistent across various subjects using a 3 by 3 patterns in a cube


Offer Types For Profit Cooperative Not for Profit Commons

10 Sustainable Development Operational Offers

Supplier of Environmentally lean Goods and or Services

Ensures he operational execution of an offer building and delivering goods or services proven to enable least effort and least harm to people and planetDepends on the resources pipeline to upskill rather than waste time on traditional models. Quality Review

20 Change, Improve or Upgrade sustainable offer s

Changes the current state and measures proving gains or improvements before operationalizing.

Qualifies and Validates the changes are going to be more effective and efficient before disrupting the operations. Quality Review

30 Invent or Innovate

New ground breaking offers in a role of partner or sponsor to outsource the innovation model.

Requires social responsibility involvement and moral considerations, with a highly complex growth and competitive advantage when done well.

Three operating models for Risk by profit or nonprofit patterns in civil society sharing solidarity societies


Serial Item

Methodology Outcomes or Stakeholder Value Dependency

10 Offer Type – Project Means of Implementation Defined Offer with vectors and options in the form of variables

Does not require financing rather payroll to worker in local civil society

20 Offer type – Program Nations to branches or industry into civil society through public and private partnerships

Contribute to a solution or set of solutions

30 Offer type - Portfolio International to nations in universal offers

Requires Public and Private Partnerships with an eye for limitations and variables

The skills three business models requireProject Management Institute (PMI) certification types


Serial Item Methodology Outcomes or Stakeholder Value

10 Offer Type – Components Means of Implementation run time monitoring

20 Offer type – Leader Manages the internal dependencies and quality across functional boundaries

30 Offer type – Service Owner Outside In and Inside Out owns the quality and life cycle

The Service Management Model ITIL Service Management extended for Business Service Management

Offers in the IT Service Management Model are the technology transfer of the business process activities used by people in their process. A business service management extends the concept of IT Service to business services of common types or universal in use across various business functions in any business or agency


Conclusion We can segment the organization by worker maturity and align the business models for operations, change/improvement and transformation

Business and Organizational Models

Change/Continuous Improvement Innovation/Transformation

Middle Lane ◦ Mid Level Workers

Leaders influence others to change or improve

People Managers manage budgets and people development

◦ Executives need visibility into the effectiveness of the changes whether strategy or continuous improvements.

Slow Lane◦ Executives commit high risk

investment capital with longer term returns innovation to grow market share

and transform the world. Without harm to people or planet

◦ High Level Workers (Experts) minimize risk within and external to the organization or agency. Innovation requires the wisdom and

breadth of knowledge

1. For entry-level employees, it costs between 30% and 50% of their annual salary to replace them. Fast Lane

Master Data Record – Sub-Account Code 10

2. For mid-level employees, it costs upwards of 150% of their annual salary to replace them. Middle Lane


3. For high-level or highly specialized employees, you're looking at 400% of their annual salary. Slow Lane


A Functional Use of the Highway Model

Fast Lane 10

Middle Lane 20

Slow Lane 30


Synthesis of Cost by Worker Class TypeA great manager knows the value of the specialized worker types (impossible to influence)

1 Employee per month 12 months Graphic of the Same Scenario

Six of these employees were entry level, with an average salary of $40,000. It costs, on average, $16,000 to replace each employee at 40% of their annual salary, for $96,000 total.

Four of these employees were mid-level, with an average salary of $80,000. It costs, on average, $120,000 to replace each employee at 150% of their annual salary, for $480,000 total.

Two of these employees were senior, with an average salary of $120,000. At 400% of their annual salary to replace them, you're looking at almost $1 million, specifically $960,000.

10 - E

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20 - M

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30 - S

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Specia

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0

200000

400000

600000

800000

1000000

1200000

Worker Maturity Class Type

Percentage of Salary to Replace

Total Cost to Replace

Average Salary

Number of Em-ployees


The End


Date post:	08-Aug-2015
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